Here are the best articles from around the web this week talking about student loans…
For the week ending Friday January 03, 2014
Student Loan News:
1. Loan Monitor Is Accused of Ruthless Tactics on Student Debt:
Stacy Jorgensen fought her way through pancreatic cancer. But her struggle was just beginning.
Before she became ill, Ms. Jorgensen took out $43,000 in student loans. As her payments piled up along with medical bills, she took the unusual step of filing for bankruptcy, requiring legal proof of “undue hardship.”
The agency charged with monitoring such bankruptcy declarations, a nonprofit with an exclusive government agreement, argued that Ms. Jorgensen did not qualify and should pay in full, dismissing her concerns about the cancer’s return.
“The mere possibility of recurrence is not enough,” a lawyer representing the agency said. “Survival rates for younger patients tend to be higher,” another wrote, citing a study presented in court. Full story: http://www.nytimes.com/2014/01/02/us/loan-monitor-is-accused-of-ruthless-tactics-on-student-debt.html
2. 8 Tips to Get Out of Student Loan Debt:
Earning a college degree is an exciting time for graduates, but it can also be stressful as nearly 40 million Americans are saddled with $1.2 trillion in student loan debt, according to CBS News. Unfortunately, student loan debt is a growing economic crisis across the nation. But, a college degree doesn’t mean you need to be saddled with student loan payments for the rest of your life. Read these eight tips to begin digging your way out of post-graduate debt.
1. Pay what you can
This is different than paying what you want. “Student loans are virtually impossible to discharge in bankruptcy — you have to prove “undue hardship” — and there are enough federal options to help with repayment that you don’t need to let the balance sit accruing interest in deferment and forbearance,” says Janet Novack, a Forbes writer. Don’t make the mistake of trying to make unrealistically high payments — make sure you’re signed up for an income-based repayment plan. It’s better to pay an amount you can afford rather than miss a payment and watch fees pile up. More explanation: http://wallstcheatsheet.com/stocks/8-tips-to-get-out-of-student-loan-debt.html/
3. Senators want U.S. colleges to share the risk on college loans:
With college tuition climbing exponentially and student loan defaults on the rise, Sens. Richard Durbin of Illinois, Jack Reed of Rhode Island and Elizabeth Warren of Massachusetts are proposing a package of reforms with a plank that some conservatives have already embraced.
Could bipartisan reform be on the way?
“One of the more controversial new proposals,” Inside Higher Ed reported, “to be introduced by Reed, would require colleges with high student loan default rates to pay a penalty to the government that is proportional to the defaulted debt. Reed said the legislation is aimed at holding colleges more accountable for student loan defaults by having them share the risk of those defaults. ‘They will have to have skin in the game,' Reed said. ‘They will have to make financial judgments based on how well-informed and how reliable their graduates are in terms of paying back their student loans.’ ” Published here: http://www.deseretnews.com/article/865593100/Senators-want-US-colleges-to-share-the-risk-on-college-loans.html
Student Loan Blog Posts:
1. Student Loan Defaults Rising, Hurting Recovery:
Student loan debt continues to burden education-seekers and degree-holders in the US. Not only that, but those debts have only grown in recent years. An average student in 2012 owed about $29,400 in student loan debts. That’s a whopping 25 percent growth from just four years earlier. Collectively, Americans owe nearly $1 trillion to their student loans.
Think that’s bad news? It gets worse. Americans facing such an enormous student loan debt burden are increasingly defaulting. The Federal Reserve Bank found that in 2013 more than one in ten student loans were considered “delinquent” — no payment made within the last 90 days — a large increase over 7.6 percent delinquent loans a mere five years earlier. Over here: http://www.inquisitr.com/1079194/student-loan-defaults-rising-hurting-recovery/
2. 7 Tips For Graduates Who Need To Pay For Student Loans:
According to a report by the Institute for College Access & Success’ Project on Student Debt, the average amount of student loan debt for college graduates was $29,400 in 2012 and $26,600 in 2011. Now, that is a lot of student loan debt!
If you recently graduated from college, or you are just now creating an action plan to pay off your student loans, the student loans tips below will help you eliminate your debt. Tips here: http://www.lifehack.org/articles/money/7-tips-for-graduates-who-need-pay-for-student-loans.html
3. Simple Guide To Single Parents Student Loans:
Being a single parent can be tough with the demands of raising a child while working and going to school. Most modern jobs require some sort of educational degree for any lucrative position to be attained. Student loans for single parents offer a way to increase educational and occupational success.
Many single parents might be getting over a significant relationship break-up that has placed a tremendous burden upon themselves. They might have been trained in one field or been a stay-at-home mom – now they need to get an academic degree to find a good job. That is where student loans for single parents can help. Linked here: http://www.degreesource.com/simple-guide-to-single-parents-student-loans/